Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Performance

For the cumulative consolidated third quarter period of the fiscal year ending March 2026, net sales amounted to 103.394 billion yen (4.0% YoY increase), operating income was 5.867 billion yen (27.7% YoY increase), ordinary income was 5.126 billion yen (16.0% YoY increase), and net income attributable to owners of parent for the quarter reached 2.458 billion yen (67.1% YoY increase). The increase in net sales was driven by steady demand in the Marine & Energy and Life businesses and the positive effect of a weaker yen. Profitability improvements were supported by cost reductions in the Powertrain and Life businesses, price adjustments, and loss improvements in the Frontier business. By segment, the Powertrain business posted 54.509 billion yen (3.8% YoY increase), Marine & Energy business 14.313 billion yen (8.8% YoY increase), Life business 16.919 billion yen (9.7% YoY increase), and Frontier business 17.012 billion yen (3.9% YoY decrease).

Financial Position and Revision to Earnings Forecast

Total assets increased by 7.18 billion yen to 203.837 billion yen compared with the previous fiscal year-end, with the equity ratio improving by 0.4 points to 37.4%. Cash flows from operating activities resulted in an inflow of 7.669 billion yen, investing activities caused an outflow of 6.649 billion yen, and financing activities yielded an inflow of 488 million yen, leading to an increase in cash and cash equivalents to 25.859 billion yen. The full-year earnings forecast for the fiscal year ending March 2026 has been revised upward, with net income attributable to owners of parent raised from 3.5 billion yen to 4 billion yen due to expected extraordinary income, and the year-end dividend forecast increased from 12 yen to 16 yen.